Functions Of Money Flashcards
1
Q
Unit of account
A
Used to present prices and record debts and value different goods and services
2
Q
Means of exchange
A
Notes or coins as money for exchange for goods or services
3
Q
Store of value
A
Allows to keep money for future uses
4
Q
Legal tender
A
Allows to pay for goods later
5
Q
Credit
A
Buy now pay later or overtime
6
Q
What are the personal factors affecting the role of money
A
Family or personal income Age Responsibilities for example children Lifestyle for example addictions Culture
7
Q
External factors affecting the role of money
A
Economic rights for example interest rates and inflation
Stability of a country for example LEDC and MEDC
Unemployment
Tax
8
Q
Legal factors affecting the role of money
A
Bankrupting
Credit laws and ratings
9
Q
Reasons why to plan ahead
A
Avoid legal actions and remain solvent
Maintain a good credit rating
Avoid bankruptcy
